Name: Alzamend Neuro, Inc. Q3 2023 Earnings Call
Start: 2023-03-16T00:00:00.000Z

Executive Summary

Alzamend posted no revenue, and Q3 2023 loss widened on higher R&D tied to AL001 Phase IIA and ALZN002 IND-related work; net loss was $5.43M ($0.06 per share), versus $3.11M ($0.03) in Q2 and $3.04M ($0.03) in Q1 .
Cash declined to $7.38M, down from $9.18M (Q2) and $11.53M (Q1), reflecting increased clinical spending; working capital reported at $5.8M in the Q3 press release .
Management highlighted two near-term clinical catalysts: completion of the clinical portion of AL001 Phase IIA (topline data expected June 2023) and initiation of ALZN002 Phase I/IIA in March 2023 .
CFO pointed to a potential non-dilutive liquidity event: $14.8M note receivable anticipated by Dec 31, 2023 (not assured), potentially funding INDs and Phase II programs beyond AL001/ALZN002 .

What Went Well and What Went Wrong

Completed clinical portion of AL001 Phase IIA; topline data expected June 2023. “We strongly believe that AL001’s patented ionic cocrystal technology could potentially provide clinicians with a major improvement...” (CEO) .
Clear near-term clinical execution plan: ALZN002 Phase I/IIA initiation targeted for March 2023 (mild–moderate Alzheimer’s), enabling dose selection for a larger Phase IIB .
Liquidity optionality: management highlighted expected $14.8M non-dilutive note receivable by year-end 2023 to support additional INDs and Phase II trials (bipolar, MDD, PTSD), if received (CFO) .

Operating expenses rose materially; Q3 R&D reached $2.89M vs. $1.53M (Q2) and $1.38M (Q1) on clinical activity, pressuring losses .
G&A remained elevated (Q3: $2.53M), reflecting stock-based comp and marketing/professional fees across recent periods .
No product revenue and continued cash burn; cash fell to $7.38M by Q3, down sequentially from $9.18M and $11.53M .

Metric	Q1 2023 (3mo ended Jul 31, 2022)	Q2 2023 (3mo ended Oct 31, 2022)	Q3 2023 (3mo ended Jan 31, 2023)
Revenue ($USD)	$0	$0	$0
Basic & Diluted EPS ($)	$(0.03)	$(0.03)	$(0.06)
Net Loss ($USD)	$(3,037,074)	$(3,109,991)	$(5,425,574)
R&D Expense ($USD)	$1,375,953	$1,532,985	$2,888,847
G&A Expense ($USD)	$1,659,589	$1,573,418	$2,534,665
Total Operating Expenses ($USD)	$3,035,542	$3,106,403	$5,423,512
Cash and Equivalents ($USD, period end)	$11,527,121	$9,182,812	$7,375,841

KPIs

KPI	Q1 2023	Q2 2023	Q3 2023
Accounts Payable & Accrued Liabilities ($USD)	$1,028,700	$648,119	$2,642,473
Working Capital ($USD)	n/a	n/a	$5,800,000 (press release figure)

Metric	Period	Previous Guidance	Current Guidance	Change
AL001 Phase IIA topline data timing	June 2023	Not previously dated	Topline data expected in June 2023	New/Specified
ALZN002 Phase I/IIA trial start	March 2023	IND cleared Oct 2022; initiation pending	Initiation expected March 2023	New/Specified
Liquidity – note receivable	Dec 31, 2023 maturity	Prior financing disclosures	$14.8M expected (not assured) by Dec 31, 2023	Reiterated timing/amount

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
AL001 clinical execution	Phase IIA MAD underway; plan to define MTD and advance (Q1 MD&A)	Ongoing Phase IIA; healthy cohort added; continued monitoring (Q2 MD&A)	Clinical portion completed; topline data expected June 2023 (PR)	Progressing to data readout
ALZN002 development	Pre-IND/IND planning; combined Phase I/II strategy (Q1 MD&A)	IND submitted Sep 2022; FDA “study may proceed” Oct 31, 2022 (Q2 MD&A)	Phase I/IIA initiation targeted March 2023 (PR)	Advancing to first dosing
Liquidity strategy	Cash $11.5M; funding needs recognized (Q1 BS/MD&A)	Cash $9.18M; continued funding needs (Q2 BS/MD&A)	Cash $7.38M; working capital $5.8M; potential $14.8M non-dilutive receivable by year-end (PR)	Cash declining; optionality via receivable
R&D spend cadence	R&D $1.38M (Q1) driven by AL001/ALZN002 prep	R&D $1.53M (Q2), higher professional/clinical fees	R&D $2.89M (Q3), reflecting Phase IIA and IND-related activities	Rising with trial activity
Organizational footprint	4 full-time, 3 part-time employees (Q3 disclosure)	Similar small team structure (Q2)	Reaffirmed low burn/lean team (PR comments)	Stable/lean

CEO (AL001 readiness): “We strongly believe that AL001’s patented ionic cocrystal technology could potentially provide clinicians with a major improvement over current lithium-based treatments... We look forward to reporting topline data in June 2023...” .
CEO (pipeline confidence): “We strongly believe that AL001’s patented ionic cocrystal technology and the ALZN002 patient-specific immunotherapeutic vaccine candidate have the potential of treating over 40 million American...” .
CFO (liquidity path): “We expect to receive $14.8 million of cash in 2023... While no assurances can be given... the receipt... would be non-dilutive, and we anticipate utilizing such capital to file INDs... and conducting Phase II clinical trials...” .

No Q3 2023 earnings call transcript was found in company documents; key topics and clarifications are drawn from the 8-K press release and 10-Q filings .

Wall Street consensus EPS and revenue estimates for Q3 2023 via S&P Global were not available to retrieve during this session (request limit exceeded). As such, we cannot provide a beat/miss comparison relative to consensus at this time [GetEstimates error].

Near-term catalysts: AL001 Phase IIA topline (June 2023) and ALZN002 Phase I/IIA initiation (March 2023) can drive narrative and financing optionality even without revenue .
Expense-driven inflection: Elevating R&D to $2.89M in Q3 indicates accelerated clinical execution; monitor the pivot to Phase II designs and the impact on cash runway .
Liquidity watch: $7.38M cash at Q3 and potential $14.8M non-dilutive receivable by year-end (not assured) are critical to sustaining multi-indication expansion (BD, MDD, PTSD) .
Binary data event risk: AL001 Phase IIA topline will shape regulatory path and partnering prospects; positive safety/tolerability/PK outcomes could de-risk future trials .
Lean operating model: Small team with high external spend suggests scalability through outsourcing; assess dilution risks if receivable falls through and additional capital is required .
No revenue/margin framework yet: Trading thesis remains clinical and financing-driven until efficacy and commercialization visibility emerge; track IND filings and dose-finding progress .
Regulatory milestones: ALZN002 “study may proceed” and Phase I/IIA start bolster platform credibility; cross-indication AL001 plans expand TAM if clinical benefit supports broader mood disorder use .